Friday, May 9, 2008

“This country enjoys the highest standard of living ever known in history because for several generations no attempts were made toward “equalization” and “redistribution.” Inequality of wealth and incomes is the cause of the masses’ well-being, not the cause of anybody’s distress. Where there is a “lower degree of inequality,” there is necessarily a lower standard of living of the masses”.

The below lines is from Sharad Joshi “It is an old observation in economics that with increasing incomes the standards of nourishment rise”.

The Mint columnist Niranjan Rasadhyaksha writes that the “Markets are learning mechanisms. Information is transmitted through prices. And mistakes usually get minimized over time”. This is what the free market economists along saying. Is anyone out there? Read full.

Anandi R writes “The classical theory of demand, the foundation on which other principles of economics are built, states that prices are determined, other things being equal, by the demand and supply forces in the market”.

However it is true what actually need at present is that the “Indian farmers are rational and better informed in a near competitive market. The prices are market determined and are ruling higher than the MSP. So we should focus more on the real sector problem rather than spinning along with the markets”.Read more